Question

16. Explain any three features
of perfect competition market
in detail.​

Answer 1

Explanation:

1.) Consumers have perfect knowledge about the market and are well aware of any changes in the market. Consumers indulge in rational decision making.

2 ) All the factors of production, viz. labour, capital, etc, have perfect mobility in the market and are not hindered by any market factors or market forces.

3) Every firm is a price taker. It takes the price as decided by the forces of demand and supply. No firm can influence the price of the product.